Nike (from) Q4 2025 profits star-news.press/wp

Nike She said on Thursday that she expects sales and profit to give up forward, after Sneaker Giant won its largest financial success so far from a plan that she turned during the fourth fiscal quarter.

While the worst may be behind the company, it has new challenges such as the customs tariff it faces, which makes a difficult transformation more difficult. Based on a call with analysts, the head of the Finance Matt Friend described the duties as a “new and meaningful” cost.

“With the presence of new tariff rates today, we estimate an increase in the total cost to Nike by about one billion dollars,” her boyfriend, in its current fiscal year 2026.

He added that the company intends to “fully mitigate” that costs it over time because it adjusts its supply chain, and works with its partners in the factory, retail trade and increasing prices.

Currently, there are about 16 % of its supply chain in China and this is expected to reduce the range of high numbers with a single numbers by the end of the current fiscal year, which is expected to end next summer.

A friend said: “Despite the high definitions of Chinese products imported to the United States, the ability to manufacture and ability in China is still important to our global base,” a friend said.

A friend said that the company will consider cost discounts, but its higher priority still settles its business, which requires investment.

Once these efforts are implemented, a friend said that the financial impact on the total margin of 2026 is expected to be 0.75 percentage points, with a greater impact in the first half.

While Wall Street’s expectations were low in the report, Nike won estimates at the top and lower part.

Here is what the company did during the three -month period ending May 31, compared to the estimates of the analysts included in Lseg:

• Arrow’s profits: 14 cents per share for 13 cents
• profit: 11.10 billion dollars for 10.72 billion dollars, estimated

The company’s net income for a quarter reached $ 211 million, or 14 cents per share, compared to $ 1.5 billion, or 99 cents per share, a year ago.

Sales fell to $ 11.10 billion, a decrease of about 12 % from 12.61 billion dollars in the previous year.

In the last quarter, NIKE warned that the fourth financial quarter will be the low point in its transformation, but in the months that followed, the circumstances worsened, leaving the investors wondering whether there is more pain is still coming.

In a press release, a friend confirmed that the fourth financial quarter will witness the “largest financial influence” of its transformation and is expected to advance the opposite winds to move forward.

On a call with analysts, CEO Elliot Hill said that it was time to “manage the page.”

Hill said: “The results that we inform about today in the fourth quarter and the fiscal year 25 are not at the level of Nike Standard, but as we said 90 days ago, the work we do to re -set the work through the actions of” winning now “is the influence.” “From here, we expect the results of our business to improve.”

For the current quarter, NIKE expects sales to decrease in the middle of the numbers, in line with 7 % decrease expectations, according to LSEG. Its total margin is expected between 3.5 and 4.25 percentage points, including one percentage of tariff rates currently approved today.

Nike shares decreased at the beginning after issuing their report, but they increased by approximately 10 % during the company’s collective call.

During this quarter, Nike profits decreased by an amazing rate by 86 % as it worked to remove the meaningless inventory, Woo Back Whileseale Partners and reset its digital work. The biggest blow to the margins came from the use of Nike for the discounts and channels of clearance to unloading inventory, in addition to its transformation into the sentence, which is a less profitable channel than selling directly on its website and stores.

The company has warned that the strategy will lead to a decrease in the near -term profits, but it will leave work in a long -term healthy position.

During this quarter, the Nike Direct revenues, which represent stores, wholesale and located on the Internet, decreased by 14 %, led by a 26 % decrease in digital sales and a 9 % decrease in wholesale.

Nike stores, however, was a bright point. During the quarter, sales in NIKE stores increased by 2 %.

Traffic data has decreased in Nike stores since October, but these numbers also indicate that conditions may improve, according to Placeer.aiAn Analysis Company uses unknown data from mobile devices to estimate comprehensive visits to sites.

Monthly visits to NIKE stores decreased by 10.2 % in April compared to the previous year, but this decrease was narrowed to 3.2 % in May, according to Placeer.ai.

Revenue decreased in all regions during the quarter, but it came a little better than expected in North America, the largest market in Nike. Sales decreased by 11 % to $ 4.70 billion in North America, better than an analyst of $ 4.42 billion, according to the street street.

However, China’s revenues amounted to $ 1.48 billion, just less than 1.50 billion dollars expected by analysts, according to Streetaccount.

Hill told analysts that sales recovery in China would take longer “due to the unique properties of the market.” She now has more competition in the region and said she has more work to do it to clean the stock. It also tests the concepts of new retail with a local approach.

Since Hill took over as CEO of NIKE in October, many of his work focused on retrieving the strategy implemented by his predecessor John Donahu. He worked to restore wholesalers, after Donahu has followed a direct sale strategy, and he also returns Nike to its sporty focus.

During the Donahu era, Nike moved away from the fragmentation of sport and instead dismantled her work into women, men and children. Some critics say this is part of the reason for the collapse of the innovation pipeline in Nike because the work was more focused on lifestyle products directed to a wide range of consumers, rather than directing them to athletes.

In contact with analysts, Hill said the company is reorganizing the teams to focus on sports.

“Nike, Jordan and Convert will come now to work every day with a mission to create the most innovative and restaurants for shoes, clothes and accessories for the specific athletes who serve,” Hill said.

On the sentence front, Nike moves to more retailers and highlighted new efforts with brands such as aritzia and Urban Outfitters. Hill also discussed the decision to return to Amazon and start selling on the platform for the first time since 2019. Starting in this fall, Amazon will start carrying a “selection” of shoes, clothing and accessories, and Hill will have a store of distinctive features on the platform that focuses on running, training, sports and sports.

The partnership decision with trademarks such as aritzia and returning to Amazon highlights that the SCRAPPY approach that Nike takes to wholesale. It also highlights the success of Amazon in the victory over the big brands. In the past, a few brands were ready for sale on Amazon due to concerns that could reduce its image. These days, it is seen as a basic channel for many companies.

The company is still witnessing a decrease in the category of Nike products, but it said it has witnessed strong sales of new launch in running and training in North America.

During this quarter, she released a new A’Ja Wilson sport shoe, a Star Center with Las Vegas Aceses.

Hill said that the first decrease was sold in three minutes and the company plans to double the amount of husbands in the coming seasons.

During the collective call of Nike, her late partnership was not discussed with SKIMS.

The first product line was supposed to walk with Kim Kardashians Intimates Line during this quarter, but it was now postponed later this year, CNBC previously said. This partnership is a major strategy in Nike’s efforts to beat more shoppers, which can represent about 40 % of its business.

This gender gap is not perfect for estimated retailers because women tend to spend more clothes than men. NIKE has lost its market share for sportswear competitors such as LululeMon and Alo Yoga, which meets the needs of a similar customer but more orientation towards women.

Sports shoes are still the most important part of Nike business, but Apparel is the company’s growth field, and it represents about 28 % of Nike Brand’s revenues in the fiscal year 2024.